Is it alt season yet? This chart implies that an alt season could be brewing here in May 2020.
In general, alt season is when alts run and generally in this time alt gains outpace BTC gains.
In terms of the chart I’m looking at, the idea is to look for the altcoin market cap grows faster than the total market cap of all crypto with BTC in it.
Specifically I’m looking for a divergence in the two charts, where:
- Divergence in an uptrend = alt season.
- Convergence, especially in a downtrend = salt season.
Are we in an uptrend? Yes, clearly since the low in March.
Are we seeing divergence? Well, not anything epic yet, but it does look like it could be gearing up. When it comes on, it can come quick, so the idea is to spot it as soon as possible. Anyway, here is a chart and methodology. Enjoy.
TIP: All eyes on Ethereum here. It is unlikely we will see an alt season without ETH running since so many altcoins live on the Ethereum blockchain. And of course, all eyes on BTC too. Because for alt season to occur, we can’t have BTC going into a proper downtrend. With that in mind, here are some ETH and BTC charts. https://www.tradingview.com/chart/BTCUSDT/FDWZiZBz-BITCOIN-BTC-Halving-Bulls-Can-t-Stop-Won-t-Stop/ + https://www.tradingview.com/chart/ETHUSDT/ufm4aLXJ-ETHEREUM-Buy-the-Dip-and-Let-s-go-For-Another-Rip/